4.21.2011

Wells Fargo & Co. has embarked on an ambitious effort to cut expenses, as the nation's fourth-largest bank puts a new emphasis on cost controls amid lackluster revenue growth.

The San Francisco-based bank, which employs about 20,000 people in Minnesota, said the initiative -- called "Project Compass" -- aims to reduce fixed costs across all of Wells Fargo's divisions, from its retail branches to its giant mortgage servicing operation.

"This is about getting more efficient, but it's also about getting more nimble," Chief Executive John Stumpf said in a conference call with analysts Wednesday.

Project Compass began in mid-2010 and is a "bottom-up initiative," in which ideas for cutting expenses will come directly from the bank's employees rather than senior management, a bank spokeswoman said. Currently, the initiative does not involve a set number of job cuts or expense reductions.

Comment: We've heard this is coming. Maybe a buy-out ... for a 62nd B/D present! :)